South Africa and Nigeria are joining forces to boost the electric vehicle (EV) industry by using Nigeria’s rich lithium reserves.

The collaboration was announced by South African President Cyril Ramaphosa during the Nigeria-South Africa Business Roundtable held in Cape Town on December 4, 2024.

Lithium is a key ingredient in making batteries for EVs, which are becoming essential in the global move toward renewable energy and sustainable transportation.

President Ramaphosa stressed the importance of both countries working together to build the infrastructure and manufacturing capabilities needed to grow this sector.

He urged private companies and development finance institutions to invest in building facilities and improving production processes.

This partnership isn’t just about EVs—it also includes other industries, like pharmaceuticals, where both nations can gain from working together.

The initiative aligns with South Africa’s Just Transition Framework and Investment Plan, which focuses on large investments in renewable energy and the green economy in the coming years.

Ramaphosa pointed out that using the natural resources available in both countries is key to supporting green industrialization.

By processing critical minerals like lithium locally, Nigeria and South Africa can drive sustainable development and reduce reliance on imported materials.

The discussions also covered global economic issues. President Ramaphosa voiced South Africa’s support for Nigeria’s bid to join the G20, a group of the world’s biggest economies.

This was a key topic in his talks with Nigerian President Bola Tinubu, who co-chaired the 11th Bi-National Commission meeting with Ramaphosa.

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G20 membership would give Nigeria a stronger voice on the global stage and increase Africa’s representation in international decision-making.

Both leaders agreed that South Africa and Nigeria are well-placed to lead Africa’s industrial growth. They also noted the need to diversify their trade relations beyond oil and gas.

Currently, South Africa has a trade deficit with Nigeria due to oil imports. By broadening their economic ties, both countries aim to create a fairer and more beneficial partnership.

At the roundtable event, President Tinubu assured business leaders that Nigeria is committed to creating a stable environment for investments.

He explained that his government is making reforms to improve security, stability, and the rule of law, which are key to attracting foreign investors. Tinubu also encouraged South Africa to make it easier for Nigerian businesses to succeed within its borders.

One major outcome of the meeting was the creation of a Joint Ministerial Advisory Council on Industry, Trade, and Investment.

The council will address trade barriers and promote economic cooperation between the two nations. Its goal is to create a better environment for trade and investment, helping both countries make the most of their strengths.

This partnership between Nigeria and South Africa is an important step in positioning Africa as a key player in the global shift to green energy.

By focusing on critical minerals like lithium and encouraging industrial growth, the two nations are not only addressing their economic challenges but also contributing to global efforts to combat climate change.

As they move forward, it will be vital for their governments to work closely with businesses and ensure policies support their shared goals of sustainability and growth.

This collaboration has the potential to benefit not only Nigeria and South Africa but also the entire continent by promoting environmentally friendly practices and strengthening Africa’s role in the global economy.